The L.A. Times reports Governor Arnold Schwarzenegger and the legislature compromised on a minimum wage increase from $6.75 to $8.00. Under the current version of the bill, the increase will be phased in over two years. The first increase, which will take effect on 1/1/07, will be $0.75 (to $7.50 / hour). The second increase, from $7.50 to $8.00, will take effect on 1/1/08.
Under the compromise, the minimum wage will not be indexed to inflation.
If passed, the minimum wage increase will affect California's executive, administrative, and professional exemptions from overtime, which require a minimum salary of twice the minimum wage. So, the new minimum salary requirements will be $31,200.00 on 1/1/2007 and $33,280 on 1/1/2008.
The bill has not yet been signed, so it is possible additional changes will be made. We will keep you posted.
DGV
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